$0.19638829

Synthetix is a decentralized liquidity provisioning protocol operating on Ethereum and Optimistic Ethereum (an Ethereum-based layer two scaling solution). Synthetic assets-along with related offerings-are backed by stakers using Synthetix Network Token (SNX). When SNX is staked in a staking contract, it supports the creation of synthetic assets (synths). With this shared collateral setup, users can swap between synths straight through the smart contract, removing the need for counterparties. It addresses the liquidity and slippage problems that are commonly seen with DEXs. 

Using the pooled collateral model, Synthetix supports a broad set of product types. This includes Perpetual Futures and Spot Synths. Together, these products form the liquidity foundation that integrators can use to develop new financial derivatives.

SNX token holders are encouraged to stake their tokens because they receive a pro-rata share of the fees produced by Synthetix activity involving integrators. Stakers are also rewarded through SNX inflation.